Nestle targets US$115m in online sales in Malaysia

April 28th 2017 | Multiple countries | Food and drink | Nestlé

Nestle SA plans to generate M$500m (US$115m) from online sales in Malaysia, according to local media reports on April 28th. The head of the Swiss food company's Malaysian unit, Alois Hofbauer, said that the company will achieve this target over the next three to five years. He was speaking at a media briefing following Nestle Malaysia's annual general meeting.

Mr Hofbauer said that the company's e-commerce sales had tripled in 2016, compared with 2015 levels. He did not disclose the revenue figure. Nestle Malaysia launched online sales in the country last year in partnership with Lazada Group SA, a Singapore-based online retailer, and 11Street Malaysia, an online marketplace.

In its latest announcement, the company said that it planned to increase its 2017 capital expenditure in Malaysia by 63% to M$200m. Nestle will use this money across all its product categories, along with revamping its warehouses in the country. The company's finance head, Martin Peter Krugel, said that it would focus on increasing operational efficiency to counter a rise in prices of commodities and a weaker Malyasian ringgit.

For full-year 2016, Nestle Malaysia's revenue rose to an all-time high of M$5.1bn, up by 5% from a year earlier. The company benefited from a solid performance at both its domestic and export divisions. Net profit at the maker of KitKat chocolates and Maggi noodles rose by 8% to M$637m, for the year ended December 2016.